Foundry firm chased for more than £4m
A former Black Country iron foundry left debts of more than £4 million owed to 116 companies when it folded.
A former Black Country iron foundry left debts of more than £4 million owed to 116 companies when it folded.
Sigmacast in Tipton is currently being demolished to make way for 440 homes.
Developers say they have been contacted by creditors chasing their money from Sigmacast. Figures obtained by the Express & Star from Companies House show the firm owed Sandwell Council £9,713.90 and failed to pay £37,507.93 to Metal and Waste Recycling in Cradley Heath.
Its total debt is £4,293,439.42.
Sigmacast, in Upper Church Lane, closed at the end of last year after 79 years on the site. Production was moved to India with the loss of 160 jobs.
The site is now owned by Harrow Estates which is preparing the site for the new homes.
Vincent Fairclough, legal director at Harrow Estates, said: "Sigmacast owed a lot of money. A few months ago we had a security company who contacted us, as owners of the site, saying they were owed a lot as well.
"We have had a number of people come knocking asking how they will get paid by Sigmacast."
John Rice, legal director for Powke Lane-based Metal and Waste Recycling, said: "We have an ongoing relationship with other parts of the same group.
"Every bad debt is a serious matter at a time when everyone is trying to run their businesses carefully.
"We are a big enough business to have not been forced to make any redundancies.
"It is extremely sad that part of the West Midlands' industry has been lost."
Sandwell Council's deputy leader and cabinet member for strategic resources Councillor Steve Eling, said: "If a company goes under owing money then we, as the council, end up being just one of the many creditors.
"What, if anything, we recover is dependent on any payments that are made."
Planning permission has been granted to for the homes on the 8.4 acre site surrounded by Upper Church Lane, Alexandra Road and Locarno Road.
When it was open Sigmacast attracted complaints from residents over noise, pollution and disruption.
Sigmacast's parent company Amtek was unavailable for comment.
